Travel management company Hogg Robinson Group (HRG) has released its 2007 hotel survey and says business travel may become more expensive for UK corporates.
”The benefit felt by the strong British Pound, which has substantially benefited UK corporates throughout 2007, is unlikely to continue to such an extent throughout 2008,” said HRG director of global hotel relations, Margaret Bowler. ”As a result, business travel may become more expensive for UK corporates.”
However, the survey did show the UK market performed well, with most cities showing ”steady growth”.
London (”153.91, $300) was at the top of the list of UK average room rates, growing 4% on 2006. Newcastle grew 7% (”109.14) and Belfast and Edinburgh were both up 6% (”107.52), but Aberdeen saw the largest leap with a rise of 17% to ”126.06.
Moscow remains the most expensive destination worldwide for the third consecutive year - the Russian capital posted a ”staggering” 93% rise in average rates since 2004, with the average rate now almost ”250.
New York (”191.93), Paris (”171.22), Dubai (”164.52) and Milan (”164.24) came in under Moscow (with London tenth) in the global cities hotels price list.
Bowler added, ”Concerns over a global recession may continue to preoccupy many industries, however it is clear that the interconnectivity of world markets makes corporate travel a necessity which businesses cannot ignore.
”We anticipate that 2008 will be a year of further growth for the global hotel industry, although some markets may experience a temporary slowdown in the growth of average room rates.”
Only five of the 50 cities included in the survey recorded decline in rates in 2007, due to maturing local markets or a significant increase in room capacity and availability. Rates in Bangalore and Philadelphia dropped by 5%, Tokyo and Bristol were down 2% and Liverpool fell by just 1%.
”The hotel industry has shown a strong performance throughout 2007 ” although not to the levels of 2006 with many key cities achieving single as opposed to double digit growth.”